In 2022, the Company seized the favorable opportunity of high oil price, intensified efforts in high quality exploration and expanded the scale of profitable production capacity. Domestic oil and gas reserve replacement ratio amounted to 165% with domestic oil and gas equivalent production registering historical new high and profit reaching the best level in a decade. In terms of exploration, we focused on expanding resources, increasing reserve and obtaining more exploration licenses, launched the “Deep Earth” project, strengthened risk exploration and trap pre-exploration in new regions and areas, and achieved a number of oil and gas discoveries, including breakthroughs in Shunbei oil and gas in Tarim Basin, shale oil in Bohai Bay Basin and Subei Basin and shale gas in West and Southeast Sichuan. The Shengli Jiyang Shale Oil National Demonstration Zone progressed efficiently. In crude oil development, we accelerated the capacity building of major oilfields, such as Shunbei and Tahe, and strengthened fine-tuned development of mature oil fields. In natural gas development, we actively promoted the capacity building of key natural gas blocks in Shunbei Zone Two and continental facies gas in West Sichuan, scaled up mid-term and longterm LNG contracts, upgraded resources security and enhanced optimization, the profitability of whole natural gas business chain recorded a continuous growth. The Company’s production of oil and gas equivalent in 2022 was 488.99 million barrels, up by 1.9%, among which, domestic crude oil production totaled 250.79 million barrels, up by 0.5% and natural gas production reached 1,248.8 billion cubic feet, up by 4.1%.